Hundreds of jobs could be coming to Teesside under plans for a major energy project at the South Tees development site.

Yorkshire firm PMAC has announced plans for a £250m waste to energy plant at Redcar Bulk Terminal (RBT).

It is expected to create 100 permanent jobs, with a further 400 in construction.

The announcement comes a fortnight after RBT signed a key agreement with Sirius Minerals to handle 10m tonnes of fertiliser each year.

Redcar Bulk Terminal and PMAC Energy plan (Image: Scarab PR)

The deals provide a double boost for the terminal - which was dealt a “hammer blow” when SSI steelworks closed.

A 25-year South Tees masterplan was launched last year to bring wide-ranging industrial development to the former steelworks site and surrounding area - around 4,500 acres in total - and create 25,000 new jobs.

A further £5bn energy scheme, set to bring thousands more jobs, is expected to be announced formally soon.

Tees Valley Mayor Ben Houchen has said around 100 investors had shown interest in the site.

PMAC will turn household and commercial waste into green fuel, to be sold into the export market and also used to power the plant itself.

Subject to permitting and planning approvals, the facility could be online and generating enough electricity to power 56,000 homes by 2021.

South Tees Development Corporation site (Image: Gazette)

Garry O’Malley, RBT’s general manager, said the deal was a “new era” for the business and its 85 employees.

He said: “Today’s announcement is hugely significant, not only for our businesses but for the whole South Tees region.

“We’ve worked closely with PMAC Energy on this project for a number of years and it’s another reflection of the continued resurgence of Redcar Bulk Terminal and this site.

“Like many others on Teesside, we were dealt a hammer blow when SSI closed – so much so, you could say RBT’s mere survival is a success in itself.

Mr O’Malley praised the support provided by British Steel owner Greybull, which he said had provided capital and energy needed “to turn the corner”.

He added: “The fact we’re seeing significant growth, diversifying our business and attracting new companies to the Tees is an incredible achievement.

“We’ve a healthy business pipeline and the continued investment in our operations from British Steel and Greybull means we can continue to grow with confidence and pace.

“Not only does it give us the logistical advantages of being on the River Tees, the area also provides us with the workforce we’d need to manage the volume of waste coming into the plant and the quantity of fuel being created.”

Mr Houchen, who is also chairman of the South Tees Development Corporation, said: “Energy production has a key part to play in this transformation and it’s also important that we maximise the use of the land in this 4,500 acre area. We’re talking to more than 100 investors as part of this process.”

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Redcar MP Anna Turley added: “This is another big investment project in our area which builds on our existing strengths in energy generation and waste management, and crucially creates new skilled jobs for people in our area.

“I look forward to working with RBT and PMAC as this project develops, especially to ensure local people can benefit from as many of the new jobs as possible.”